Core City Homebuyer Assistance Program helps potential home buyers with $7,500 to help with their down payment or closing costs on a home $200,000 or less. This first time home buyer loan has an interest rate of just three percent at a term of five years, that’s deferred for the first three years after purchase.
Home buyers must qualify financially, complete eight hours of pre-purchase home buyer education, aand four hours of counseling after their purchase.
Education comes at a price, and not just the cost of the degree itself. We’re talking about the inability to take advantage of today’s low mortgage rates and stable prices.
Student loans are now cited most often by young buyers as the main expense that prevents them from saving for a down payment. Nothing new there, perhaps. But a new report is the first to quantify the impact.
According to John Burns Real Estate Consulting, some 414,000 new home transactions will be lost this year because of student debt. At the average price of $200,000 per house, that translates to about $83 billion in lost business.
Young couples and people looking to purchase a home can sometimes find it more difficult because of student loans that have come due and because they are still relatively new in their career. There are many types of loans available to first time home buyers that can alleviate some of the pressure of having to come up with a large down payment. You can choose one of several loans that is geared towards the first time buyer. The advantages of a first time home buyers loan are:
* You can make a low down payment.
* Interest can be subsidized.
* You can avail of grants.
* Loan forgiveness.
* The fees that lenders charge are limited.
* You can choose deferred payment plans
Government Aid for First time Home Buyers
First time home buyers get excited when they find out they can get a loan with little to no money down. The Housing and Urban Development department supplies states with funds that can aid low to medium income home buyers with covering their closing costs on their first home. These loans for first time home owners can be $10,000 or more.
There are some loans that are forgiven when the home owner stays in his home for more than 3 years; there are also programs that offer a 10% discount on the price of the home. Most people who qualify for these loans are usually earning less than 80% of their region’s average income.
If you are looking for a particular loan, you can contact your state housing finance agency to find the loan that is right for you. Or you can get online and research home buyer loans for first time owners and come up with more than enough information to get you started.
There are places to go in your own community to help you find the right loans; all you have to do is know where to look. Churches and local organizations are great sources when it comes to finding the right loan for you.
There are many loans and grants to be had by the first time home buyer so it is better to take your time and research them well. There are rules to be followed and sometimes they can become irritating but what better price to pay when you are actually able to find free money for the purchase of your very first home.
Some grants make the potential owners take certain classes that can add up to several hours of class time. They are taught the basics about finding good lenders and learning their credit scores along with a lot of other information that proves to be helpful to first time home buyers. Doing it right the first time can save a lot of heartache in the end with a loan that goes south on you. Take the time to research and you will be one step ahead of the game.
A first time home buyer can find it easy to shop for a first time home buyers mortgage these days. You no longer have to struggle with traveling from place to place trying to find a loan. Applying for a loan online has made the process much easier and you can compare rates in your own spare time.
In a few simple steps, you will be able to find the perfect first time home buyers mortgage that will suit you and your financial needs by going online. Here are the steps you will want to take while trying to secure your first loan:
1. First select the terms of the first time home buyers mortgage.
The terms of your loan are going to have an effect on your payment and the interest rate. If you want to get the most value for your money, it is best to look for an adjustable rate loan. Your payments will start out low but will grow in time. If you want to stay within a steady budget, look for a first time home buyers mortgage that is set at a fixed rate as this will allow you to know exactly what you’re paying for the remainder of the loan. If you choose a loan that will be paid off in 15 years, you should know that the payments will be at least 1/3 higher than the average 30-year mortgage but you will be saving a substantial amount in final costs by cutting the interest considerably.
2. Know what first time home buyers mortgage you’re getting into.
Make sure you are clear about payback interest rates because a higher rate can have you spending thousands more in the long run. If you want to buy a home and sell it off rather rapidly, you should look for a loan that offers lower closing costs. If you plan on staying in your home for several years then taking advantage of lower rates will be in your best interest.
3. Get your first time home buyers mortgage online.
You can get your loan started right online saving you the headache of running all over town to get to the first time home buyers mortgage lender. Even if you have not found the home of your choice, you can get pre-approved for a loan that will help you when it comes to placing your bid on a home. You can get all of your forms in the mail and the headache of finding the right loan has been greatly reduced.
Own a Home With First Time Home Buyer Mortgage Programs
Is it time for you to finally get out there and purchase your first home? If so, you already know what a big step it is finally being able to realize your American dream. Not only does a home give you a sense of ownership pride, it is a good investment in your future.
Several First Time Home Buyer Mortgage Programs Are Available
There are several first time home buyer mortgage programs specially tailored to the first time home buyer and you will be able to find one that suits your needs, as well as your ability to pay back the loan. Before buying your first home, make sure that your mortgage lender goes over these buyer programs with you so you can find the one that is perfect for you.
FHA First Time Home Buyer Mortgage Programs
FHA loans are the longest tenured first time buyer mortgage programs available for helping the first time home buyer. FHA loans guarantee your loan will be paid back to the lender. It is a sort of insurance that guarantees your loan. FHA loans are perfect for those who have less than perfect credit or for those who can’t afford paying a large payment up front for their home. FHA will not help you get into a home that is not in your price ability to pay back, but it will assist you into getting an affordable home. Pay attention to the prices and don’t let anyone talk you into a home that is over your planned budget.
FHA applications are not unlike those of conventional loans. You need 3 years worth of proof of income, an accounting of your current debt, rent, alimony, and social security. You do not have to worry about the debts that can be paid completely in less than a year because this debt is considered short term and will not count against you.
When you are trying to figure out what you can afford, it is best to go by FHA standards when calculating. Twenty-nine percent of your income can go towards the cost of housing and 41% can go towards your expenses and other debt. If you have a number in mind that is affordable to you, it is best to stick with that number or below when you are out house hunting.
It really doesn’t matter whether or not this is your first home; FHA is there to offer a hand but you should still check around and see what other mortgages are available to you. Remember, this is an investment and it will take the next 30 years to pay it off.
If you want to learn more about FHA loans and how they can help you with the purchase of your new home, you can talk to your lender or visit the FHA website at www.fha.gov. You will find all of the information you need that will allow you to make an informed decision.
Local and State First Time Home Buyer Mortgage Programs
Many areas have local and state programs that you can take advantage of while trying to purchase your new home and all it takes is a small amount of elbow work to research what it is you are looking for. Talk to your realtor because realtors are always a wealth of information and picking their brains may lead you to the right choice for you. If you want to talk to your lender, they are also familiar with the different types of loans that are available. Don’t rush, take your time and you will be sure to find the home of your dreams with first time home buyer mortgage programs.
Buying a Home With First Time Home Buyer Mortgage Loans
Buying your first home is a great time full of excitement and even fear. The process of buying your first home is unfamiliar and can be a bit intimidating. There are several mortgage loan programs available and it is important to know the difference between first time home buyer mortgage loans before signing on the dotted line. You should also know what factors can increase or even decrease your chance of getting a great rate.
What is Your Bottom Line on First Time Home Buyer Mortgage Loans
Many first time buyers end up purchasing a home that is out of their price range and they can’t afford it. Many people make the wrong assumption. Just because first time home buyer mortgage loans are approved does not mean you can actually afford the monthly payments. Lenders do sometimes approve loans that are higher than what a buyer can afford because let’s face it, they make more money on these loans. You need to figure in cost of living, utilities, and emergencies.
Getting Pre-Qualified For First Time Home Buyer Mortgage Loans
When you are pre-qualified for a loan, the sellers know that you are probably going to be able to get the mortgage and make your home buying go smoother. You will also be able to know the price range of homes you should be looking at so you don’t waste your time on homes that are out of your price range. A pre-qualification is still a loan that will have to be processed but it states that if your current situation has gone unchanged, you will be able to get the loan you apply for.
First Step For First Time Home Buyer Mortgage Loans
Make sure that any debts you have outstanding are paid for or at least under control before you start applying for loans. If you have a bad debt on your account, fix it before you begin. If you have a good credit history, you will be able to make a choice in loans. If you have poor credit, you may be stuck with the loan that is offered, high interest and all. Don’t skip payments and by all means pay off the smaller loans that can affect your score.
Select Your First Time Home Buyer Mortgage Loans Package
Your broker will have an idea on what loans you may qualify for. If you want to keep a little cash on hand, you should look for a loan with little to no down payment that will have to be handed over up front. Let your lender know what it is you are looking for and they will find you the best first time home buyer mortgage loans possible.